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Working Capital Management a Measurement Tool for Profitability: A Study on Pharmaceutical Industry in Bangladesh
Md. Amir Sharif,
Md. Rafiul Islam
Issue:
Volume 6, Issue 1, January 2018
Pages:
1-10
Received:
4 November 2017
Accepted:
20 November 2017
Published:
12 January 2018
Abstract: The paper is an attempt to show the relationship between working capital and the profitability function of pharmaceutical industry in Bangladesh. Working capital management as a financial strategy has its effects on liquidity as well as profitability of the firm. To serve the study mostly secondary data have been used of pharmaceutical companies listed in DSE & CSE and data include time series from annual reports of the selected companies. Sample size includes10 selected pharmaceutical companies and their five years annual data. Multiple regression and correlation have been used to analyze the data. To serve the study perspective, this paper considered the working capital indicators such as (Account Receivable Turnover in days, Account payable Turnover in days, Inventory Turnover in days and Cash conversion cycle) as independent variable where as Profitability indicator (Return on Assets) as dependent variable and found there is a significant relationship between the variables studied. Finally the study shows the rejection of Null hypotheses (H0) which mentions that there is significant effect of working capital on firm’s profitability. The inference drawn from the study would be able to provide the basis for rethinking the practices of working capital management for competitive survival.
Abstract: The paper is an attempt to show the relationship between working capital and the profitability function of pharmaceutical industry in Bangladesh. Working capital management as a financial strategy has its effects on liquidity as well as profitability of the firm. To serve the study mostly secondary data have been used of pharmaceutical companies li...
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Internal Corporate Governance and Financial Performance Nexus; a Case of Banks of Pakistan
Uzma Bashir,
Ummara Fatima,
Sundas Sohail,
Farhat Rasul,
Rabia Mehboob
Issue:
Volume 6, Issue 1, January 2018
Pages:
11-17
Received:
29 August 2017
Accepted:
5 December 2017
Published:
20 January 2018
Abstract: The persistence of corporate governance (CG) is to expedite operative and cautious management which can transport the enduring success of the company. The performance of any firm or bank is vibrantly enhanced by corporate governance. The key contribution of this study to governance literature is that; it demonstrates how the presence of the internal governance mechanism influence the bank performance. The study makes an attempt to measure the impact of internal governance indicators (Board Structure and Ownership Structure) on the financial performance (Return on Equity, Return on Assets and Earning Per Share) of the banks of Pakistan under the presence of control variables (leverage and size). The selected sample consist of 30 banks (public, private and specialized), which are listed at Pakistan Stock Exchange (PSE) for the period 2008-2014. The study takes 30 banks listed in PSE, formerly KSE and, check how corporate governance impact on all the listed banks at PSE, irrespective of their nature of operation. Study also extended the time frame till 2014. The study comprises of three models. The regression analysis results reveal that the majority of the internal governance indicators of Model 2 and 3 show significant relationship with ROE and EPS whereas, majority of the internal governance indicators of Model 1 depict insignificant relationship with ROA. The results depict that in a developing country like Pakistan there are sound codes of corporate governance but, their proper implementation is missing.
Abstract: The persistence of corporate governance (CG) is to expedite operative and cautious management which can transport the enduring success of the company. The performance of any firm or bank is vibrantly enhanced by corporate governance. The key contribution of this study to governance literature is that; it demonstrates how the presence of the interna...
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The Research on the Impact of China’s New Budget Law of the Market Process of Local Government Bonds
Tao Wang,
Zhi-qi Zhu,
Ke Gao,
Xiao-jing Hao
Issue:
Volume 6, Issue 1, January 2018
Pages:
18-25
Received:
23 February 2018
Published:
24 February 2018
Abstract: With the implementation of the New Budget Law in 2015, the "front door" for the issuance of local government bonds has been opened and hundreds of local bonds have entered the bond market. However, whether the New Budget Law really enhances the marketability of local government bonds, this has been a common concern of all walks of life. Since there is no discount or premium on the local government bonds issued in China at present, the market-based pricing of the issue interest rate is the main index to measure the degree of marketization of local bonds. This paper firstly summarizes the relevant factors that influence the interest rate of local government bonds under the condition of marketization, and then analyzes the impact of these factors on the interest rate of local bonds around 2015 by means of empirical ways, to determine whether the degree of marketization of local bonds is affected by the New Budget Law. The results of regression analysis show that under the condition of keeping other factors unchanged, the new budget method has a significant positive correlation with the local debt issuance rate as a dummy variable, which shows that the implementation of the new budgeting law has indeed affected the issuance rate of local bonds. In the regression of local bonds issued before and after 2015, comparing local debt bond characteristics variables with local debt issuer characteristic variables, this article finds that except for local bond issuance, other variables are significant in both regression, The effect of local bond issuance on the interest rate of local bonds after the implementation of the New Budget Law becomes significantly positive. This shows that the degree of marketization of local government bonds has been somewhat enhanced after the implementation of the New Budget Law.
Abstract: With the implementation of the New Budget Law in 2015, the "front door" for the issuance of local government bonds has been opened and hundreds of local bonds have entered the bond market. However, whether the New Budget Law really enhances the marketability of local government bonds, this has been a common concern of all walks of life. Since there...
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Econometrics Analysis of Financial Development and Economic Growth: Evidence from Nigeria
Godwin Chigozie Okpara,
Anne Nwannennaya Onoh,
Benson Mbonu Ogbonna,
Eugene Iheanacho,
Iheukwumere Kelechi
Issue:
Volume 6, Issue 1, January 2018
Pages:
26-34
Received:
26 January 2018
Accepted:
11 February 2018
Published:
14 March 2018
Abstract: This work explored the relationship between financial development and economic growth in Nigeria. Specifically it investigated the extent to which financial development engenders economic growth. It also verified the existence of supply leading and/or demand following hypotheses in Nigeria. To evaluate these, the researchers firstly determined the stationarity of the variables which informed the use of cointegration and then the vector error correction model to finding the long run impact of financial development variables on the growth of the economy. The diagnostic test was employed to determine the authenticity and stability of our model. The researchers also employed the Granger Causality test to investigate the existence of supply leading and/or demand following hypothesis. The results of the analyses show that there is a longrun relationship between financial development and economic growth in Nigeria and that besides the metric for banking system financing of the economy variable which is significantly inadequate, all other financial development indicators engender economic growth. Our diagnostic test shows that the model is adequate, plausible, and stable. The short run causality test shows bidirectional causality between capital market liquidity or economic volatility and the growth of the economy while market capitalization ratio, broad money velocity and the banking system rate of financing the economy drive economic growth with no feedback effect. On the basis of the findings, the researchers call on the government to articulate reform packages (such that may involve vigorous financial inclusion) capable of enhancing the banking sectors’ involvement in the financing of the economy so as to achieve enormous economic growth.
Abstract: This work explored the relationship between financial development and economic growth in Nigeria. Specifically it investigated the extent to which financial development engenders economic growth. It also verified the existence of supply leading and/or demand following hypotheses in Nigeria. To evaluate these, the researchers firstly determined the ...
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Impact of Weekdays on the Return Rate of Stock Price Index: Evidence from the Stock Exchange of Thailand
Pichit Boonkrong,
Nithipa Arjrith
Issue:
Volume 6, Issue 1, January 2018
Pages:
35-41
Received:
26 April 2018
Published:
27 April 2018
Abstract: This research aims to study the effect of the days in week on the return of the stock price index, particularly in the Stock Exchange of Thailand (SET). The daily closing prices of SET50 index from June 2, 2003 to June 2, 2017 are taken into account, i.e., there are totally 3,425 days. The stock returns of the 50 companies are calculated according to the daily historical stock prices of companies. Both descriptive and inferential statistics are employed in data analysis including average, standard deviation, multiple comparisons and multiple regression analysis. Applying ordinary least square method, the linear equation with five dummy variables is formulated for multiple regression analysis. The results show that the means of daily return rate of SET50 index are significantly different. Monday has a negative influence on the return rate of SET50 index whereas Friday has a positive influence at the significance level of 0.05. The return rate of SET50 index on Monday is lowest whilst Friday is highest during the week.
Abstract: This research aims to study the effect of the days in week on the return of the stock price index, particularly in the Stock Exchange of Thailand (SET). The daily closing prices of SET50 index from June 2, 2003 to June 2, 2017 are taken into account, i.e., there are totally 3,425 days. The stock returns of the 50 companies are calculated according ...
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Media Attention, Executive Reputation and Corporate Social Responsibility-- Empirical Evidence from Chinese A-share Listed Companies
Issue:
Volume 6, Issue 1, January 2018
Pages:
42-48
Received:
26 April 2018
Published:
27 April 2018
Abstract: Taking 2013-2015 Chinese a-share Listed Companies as the research object, this paper studies the impact of media attention and executive reputation on the performance of corporate social responsibility. The results show that: media attention is positively correlated with performance of corporate social responsibility, the higher the media attention, the better corporate social responsibility is;The same goes to The relation between executive reputation and performance of social responsibility. Compared with non-state-owned enterprises, executive reputation has more influence on the performance of social responsibility of state-owned enterprises. Further research found that: there is a complementary effect between media attention and executive reputation to the impact of corporate social responsibility, In other words, the higher the executive reputation is, the role of the media supervision easier to play, the stronger the media attention to the promotion of corporate social responsibility.
Abstract: Taking 2013-2015 Chinese a-share Listed Companies as the research object, this paper studies the impact of media attention and executive reputation on the performance of corporate social responsibility. The results show that: media attention is positively correlated with performance of corporate social responsibility, the higher the media attention...
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